Question
c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the
c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $750,000 and machine hours used would be 30,000. The following information pertains to March of the current year: Job X Job Y Job Z Totals Beginning balance $18,000 $27,000 $30,000 $75,000 Current period costs added: Direct materials requisitioned (used) $40,000 $45,000 $35,000 $120,000 Direct labor costs $28,000 $40,000 $37,000 $105,000 Current period activity Machine hours 1,500 2,000 1,500 5,000 Assume that Jobs X and Y are completed during the month; and that Job X was sold on account for $150,000. Required: a. Compute the predetermined overhead application rate for the year. 25/per yr b. Determine the total cost (including beginning inventory) assigned to each job; X, Y, and Z. On Paper c. Give the journal entry to record the completion of Jobs X and Y. on Paper d. Give the journal entries to record (1) the sale and (2) the cost of sale of Job X. M Paper e. What is the ending balance of Brooke's work-in-process inventory? On Paper
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